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Washington has exerted influence on Thailand to recommit to a truce deal with the Cambodian side, stating that trade talks could be suspended as efforts are made to prevent a Trump-mediated peace agreement from falling apart.

Rising Border Hostilities

Earlier this week, Thailand announced it was putting on hold the ceasefire deal, accusing Cambodia of laying fresh landmines along the shared border, including one that reportedly wounded a Thai military personnel on duty, who lost a foot in the blast.

Following this, one person has been killed and several others wounded by exchanges of fire along the border between the two nations, raising concerns of a new round of tit-for-tat fighting.

American Economic Leverage

On Saturday, a representative from Thailand's foreign office informed reporters that a official communication from the Office of the US Trade Representative announcing the suspension of trade deal talks was received on Friday night.

He quoted the document as stating that discussions on trade – which are focusing on a 19 percent American duty – could resume once Thailand reaffirmed its commitment to carrying out the mutual truce agreement.

“Tariff negotiations will continue and remain separate from border issues,” stated another government spokesperson.

Trump’s Tariff Threat

Addressing reporters aboard the presidential plane as he traveled to the Sunshine State on the end of the week, the US leader implied that he had used the “threat of tariffs” in discussions with the south-east Asian leaders.

He stated, “I stopped a war just today through the use of tariffs, the threat of tariffs,” continuing, “they’re doing great. I think they’re gonna be fine.”

Ceasefire Agreement Background

The President witnessed the finalization of a peace deal, held in Malaysia this last autumn, and has promoted it as one of several deals around the world he says should win him the Nobel Peace prize.

The most severe clashes in a ten years between Thai and Cambodian troops erupted in July, with exchanges of fire, shelling and aerial attacks causing numerous fatalities and hundreds of thousands forced to flee.

Longstanding Border Dispute

The two neighboring countries have a longstanding border dispute that dates back to conflicts regarding colonial-era maps drawn up by the French. Historic shrines along the frontier are claimed by both sides.

Reuters contributed to this report.